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(Sharecast News) - Luxury carmaker Aston Martin Lagonda saw a double-digit drop in revenues and adjusted profits in the first quarter, but said that the launch of four new models should drive "significant growth" in the second half and beyond.
As a result, the company held on to its full-year guidance of improved profitability and EBITDA, an improvement in gross margins to 40% and high single-digit percentage wholesale volume growth.
Revenues were down 10% year-on-year in the first quarter at £267.7m, driven by a 26% drop in wholesale volumes to 945.
The gross margin improved by 280 basis points to 37.2%, leading to just a 2% reduction in gross profit to £99.7m. However, adjusted EBITDA dropped by 34% to £19.9m due to a big increase in net financing expenses and a slight increase in operating expenses.
"2024 is a year of immense product transformation at Aston Martin, with the introduction of four new models to the market before the end of the year," said executive chair Lawrence Stroll.
"Our first quarter performance reflects this expected period of transition, as we ceased production and delivery of our outgoing core models ahead of the ramp up in production of the new Vantage, upgraded DBX707 and our upcoming V12 flagship sports car which we've confirmed today. As part of our ongoing programme of ultra-exclusive models, we will deliver a new Special in the fourth quarter of the year."
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